Recycling biz reckons AI features are destroying smartphone resale values
The Register
February 25, 2026
AI-Generated Deep Dive Summary
Smartphone manufacturers' increasing reliance on AI features may be unintentionally harming the resale value of their devices. According to a report from UK-based Compare and Recycle, Samsung's Galaxy S25 lost 63% of its resale value in just one year—a sharp reversal from previous trends where Samsung flagships depreciated more slowly. The culprit, experts suggest, is the heavy emphasis on AI as a core selling point. Features like live translation, generative photo editing, and AI search, which were prominently marketed by Samsung, are now seen as overhyped by consumers. This shift has created a divide in the market: while early adopters and premium buyers may still value these AI capabilities, mid-range users prioritize affordability and practicality over advanced tech features.
The issue extends beyond Samsung to other Android smartphone makers, many of whom are now positioning their premium devices as "AI phones." However, this strategy is not universally effective. Gartner's Ranjit Atwal points out that trust in AI remains a significant barrier. While consumers may feel comfortable with AI for specific tasks like photo editing, they remain skeptical of broader applications, such as data privacy concerns and intrusive algorithms. This lack of trust, combined with rising costs, has made mid-range buyers hesitant to invest in high-end devices with heavy AI integration.
The implications of this trend are significant for both manufacturers and consumers. For brands like Samsung, doubling down on AI as a key feature risks alienating a crucial segment of the market—those who prioritize value over innovation. As noted by Compare and Recycle's Lee Elliott, this could lead to long-term commercial risks, especially if public sentiment toward AI continues to sour. Meanwhile, consumers face a dilemma: while AI features are now standard in premium smartphones, many feel forced into purchasing them despite concerns about resale value and trust.
The debate over AI's role in smartphones highlights a broader shift in consumer priorities. While some buyers are willing to pay more for advanced tech capabilities, others are
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Originally published on The Register on 2/25/2026